European
markets are expected to open higher Friday. Investors are keenly watching the
Eurozone trade balance and US consumer sentiment data, while today's G20
meeting holds significance given the recent currency war debate.

Italian
police arrested on Thursday the former head of Monte dei Paschi's finance
department, who is at the center of a probe into alleged fraud and bribery at Italy's third largest bank, prosecutors
said.

What is
playing out is a classic competition between management strategies, as Vendola
advocates for activist stimulus and Monti calls on Italians to tighten their
belts for one more round. Bersani meanwhile tries to walk a fine line he calls
“austerity with justice,” whatever that turns out to mean. But as Hollande
waffles along the same line, and Merkel prepares to defend her mercantilist
fundamentalism this fall, Italy–for all its woes, still the
Eurozone’s 3rd biggest economy–will be helping to arbitrate the larger EU’s
path through this intractable crisis.

Spain’s labour market reforms are unlikely to lead to economic growth or a
drop in unemployment
– europp
/ LSE